4 Good Things About The Sprint Nextel, T-Mobile Deal & 3 Bad Things

Last week London Telegraph reported that Deutsche Telekom was considering making a bid for Sprint Nextel. Sprint’s value has dwindled over the past few years with subscribers leaving in the thousands but a deal with Deutsch could bring together T-Mobile and Sprint Nextel to create the second biggest wireless carrier in the United States behind Verizon Wireless and ahead of AT&T wireless. There are some benefits if T-Mobile and Sprint Nextel were to combine but there are also some negative things to the deal as well.

Four Good Things About The Sprint Nextel and T-Mobile Deal

1. Will become the #2 wireless carrier in the United States with 82.3 Million subscribers

Only Verizon will be ahead of Sprint Nextel and T-Mobile, It’ll help them fight off their rivals and appeal to a much better audience.

2. Better 3G service for T-Mobile customers

T-Mobile doesn’t have a solid 3G service, while Sprint Nextel does. It’ll give T-Mobile customers the ability to finally take advantage of the faster 3G service.

3. Better phones for both companies

Sprint has been getting some of the hottest phones in the market from Blackberry, HTC and Palm. By adding T-Mobile, they’ll have almost every phone in their arsenal short of the iPhone.

4. Cheaper plans

Sprint has recently rolled out their unlimited nationwide plan, where you can call anyone in the country on any network without any extra charges. T-Mobile has cheap data and text plans. Combine the two and it might force Verizon and AT&T to start lower their plans.

Three Bad Things About the Sprint Nextel and T-Mobile Deal

1. Incompatible networks

T-Mobile is on the GSM network while Sprint is on the CDMA network. To change and sync an entire network into one, it’s going to take a lot of money and time. Both networks probably don’t have that option or enough money to combine both networks.

2. Lost Subscribers and slow growth

T-Mobile growth has slowed while Sprint has lost over 250,000 subscriber over the past few years.

3. Ant-trust case by the FCC

The FCC is already investigating AT&T and Verizon, the last thing Sprint Nextel and T-Mobile need is to be the next company under investigation.